2026 tax year · take-home pay
Indiana Paycheck Calculator (2026)
Indiana's flat state income tax dropped to 2.95% for 2026 (down from 3.05%), making it one of the lowest flat rates in the country. But Indiana is also the state where your county of residence matters: every Indiana county levies its own income tax, ranging from roughly 0.5% to 3%, withheld alongside state tax. The county rate for where you live is added on top of the 2.95%.
Your paycheck breakdown
Estimated take-home pay
$1,632.98
per paycheck · $42,457.48/yr · 18.4% withheld
- Gross pay
- $2,000.00
- − Federal income tax
- $156.15
- − Social Security
- $124.00
- − Medicare
- $29.00
- − IN state income tax
- $57.87
- Net take-home
- $1,632.98
Estimate for tax year 2026. Withholding depends on your W-4 and employer; your actual paycheck may differ. Not tax advice.
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What to do with your take-home
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- Free and paid options for filing your federal and state return when the year is up.Compare tax-filing software
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How Indiana withholding works
Indiana's 2026 rate cut to 2.95%
Indiana has been gradually reducing its flat state income tax rate and in 2026 it falls to 2.95%. The $1,000 personal exemption reduces taxable income before the rate applies. The rate cut is automatic and affects all Indiana employees. No W-4 change is needed, but it is worth checking your pay stub to confirm your employer's payroll system reflects the new rate.
Indiana county income taxes: don't overlook them
Every Indiana county levies its own income tax, and the rate is determined by your county of residence (not your workplace). Rates range from about 0.5% up to 3% depending on the county. The county tax is withheld by your employer alongside state tax and is included in your total Indiana withholding. A worker living in a high-county-rate area can pay a combined state-plus-county rate over 5% even with the low flat state rate.
Rates & brackets
Indiana's 2026 income tax rates
Indiana applies a single flat rate to taxable income (after the standard deduction or exemption). Here is the 2026 schedule as this calculator applies it:
| Taxable income | Rate |
|---|---|
| $0 and up | 2.95% |
Standard deduction applied: $1,000 (single), $2,000 (married filing jointly). Brackets apply to income after this deduction.
Local income tax not included: Every Indiana county levies its own local income tax (roughly 0.5%–3%) on top of the state rate. This calculator shows the state tax only.
Source: primary 2026 tax data, verified . See our methodology for full sources.
Worked examples
Estimated take-home at common salaries in Indiana
Rough figures for a single filer over a full tax year, with no pre-tax deductions, a starting point before you run your own numbers above.
| Gross | Federal income tax | FICA | IN state tax | Take-home |
|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,151 | $33,170 |
| $60,000 | $5,020 | $4,590 | $1,741 | $48,650 |
| $85,000 | $9,870 | $6,503 | $2,478 | $66,150 |
| $120,000 | $17,570 | $9,180 | $3,511 | $89,740 |
Estimates for the 2026 tax year, single filer, computed from published federal and Indiana tax tables. Rounded to the nearest dollar. Your actual pay depends on your W-4, pre-tax deductions, and employer payroll. Not tax advice.
Common questions
Indiana Paycheck Calculator: common questions
- What is Indiana's income tax rate for 2026?
- Indiana's flat state income tax rate is 2.95% for 2026, reduced from 3.05%. On top of that, your county of residence adds its own income tax, typically 0.5%–3%.
- How does Indiana county income tax work?
- Every Indiana county levies a local income tax on residents. The rate varies by county (roughly 0.5%–3%) and is withheld from your paycheck by your employer based on your county of residence, not your work location.
- What comes out of an Indiana paycheck?
- Your withholding covers federal income tax, FICA (Social Security 6.2%, Medicare 1.45%), Indiana flat income tax at 2.95%, and your county income tax. State and federal withholding is what the calculator shows; add your county rate to complete the picture.
Other state calculators
Estimates for tax year 2026, based on published federal and state tax tables. Not tax advice. Page last updated .